Uber loses its licence to operate in London

Uber has faced criticism from unions, lawmakers and traditional black cab drivers in London over working conditions.ETtech | September 22, 2017, 16:11 IST

London's transport regulator on Friday rejected Uber's application to renew its license to operate in the city when it expires at the end of this month, thereby affecting over 40,000 drivers in a huge blow to the taxi app.

Transport for London (TfL) said in a statement that Uber is “not fit and proper to hold a private hire operator licence”.

"Uber's approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications," TfL said.

Uber has the right to appeal against this decision for 21 days. It is unclear whether Uber will be able to operate in October whilst any appeal is being considered.

"3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision." Uber London general manager Tom Elvidge said in a statement.

"By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice. If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport." he added.

Uber has faced criticism from unions, lawmakers and traditional black cab drivers in London over working conditions.

Globally, the world's most valuable startup Uber has endured a tumultuous few months after a string of scandals including allegations of sexism and bullying at the company, leading to investor pressure that forced out former CEO and co-founder Travis Kalanick.

The app has been forced to quit several countries including Denmark and Hungary and faced regulatory battles in multiple U.S. states and countries around the world.

London Mayor Sadiq Khan said he backed the decision. "All companies in London must play by the rules and adhere to the high standards we expect - particularly when it comes to the safety of customers," he said. "It would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners' safety and security."